Dear Reader,
Today I want to talk about an article I read last week in The Wall Street Journal.
It really hints at the revolution that’s happening in warfare, which is something we’ve been talking about here for years, because you guys know defense is one of my big topics of interest, based on my love for studying history and warfare.
People always ask me, “why are you so interested in defense?”
I’ve studied the decline of empires, of countries.
I’ve spent my life studying how these things happen…
I’ve always wondered how we as Americans can really prevent the beautiful American experiment we have from declining.
This is one of the big reasons I focus so much on warfare…
What kind of armed services does a country really need to protect itself?
That’s what drove my initial interest.
And now we are witnessing a revolution in warfare.
They’re calling it “the fourth revolution in warfare.”
It’s happening right now.
So this Wall Street Journal article brought home what’s happening when they reported last week that the U.S. Army is planning a massive increase in its use of drones.
The shift to more small, unmanned aircraft is based on lessons learned from the Ukrainian battlefield.
Ex-Vice Army Chief of Staff Jack Keane said, “land warfare has transitioned to drone warfare. A soldier carrying a rocket propelled grenade, a tank command and control facilities, artillery positions can all be taken out by drones very rapidly.”
That is a big statement.
When we think of WWII movies like Saving Private Ryan, you have these guys sitting there with rocket-propelled grenades, or shoulder-fired mortar grenades, hiding behind bushes…
And you see tanks roll by and they shoot at the tank and get it…
Keane’s saying that’s going away.
Drones patrol the skies and just take those things out.
It’s amazing what we’re witnessing.
It’s not just a modern revolution in warfare - it’s changing how wars are being fought in a very fundamental way, for the first time in human history.
Historically, you have a situation where the army with the fastest kill chain has always been the one that’s most successful.
A kill chain is the process the military calls, “identify, target, kill.”
You identify your opponent.
You target your opponent.
You kill your opponent.
This has been the kill chain since the beginning of time.
When you think back to the early Middle East, Egypt, or even ancient history - Alexander the Great, and Caesar, the kill chain was simple:
You see your enemy across the field - you identify them.
You raise your arrows and target them.
You shoot.
It was an eye-to-eye kill chain.
And in the past several years with the invention of targeted missiles, especially in the 1990s' Gulf War, we saw that on display…
It became a kill chain where you didn’t even have to see your opponent.
But soldiers were always key infantry.
“Grunts” were always key to the process of going after the enemy - no doubt about it.
And when you leave your soldiers exposed, whoever has control of the skies can just take them out.
So what is the Army doing?
They’ve stopped procuring Humvees, they’re canceling purchases of M-10 light tanks.
What we’ll see going forward will look a lot different from Saving Private Ryan…
You can’t put a bunch of guys on the ground with drones overhead.
So it’ll look more like a bunch of kids playing Xbox, fighting with drones, than guys hiding in the bushes with grenades.
Warfare is CHANGING.
And we have identified what we believe are the three companies best positioned to benefit from this exact new environment.
You need hardware - the drones themselves. And you need software.
Breakthrough Wealth is where we focus on all of this.
It’s our service with the highest average return in 2024 at 62% across all closed trades, wins and losses.
We have a lot of exciting companies in there - especially companies focused on AI and defense.
With the new trillion-dollar defense budget Trump proposed, it looks like a lot of these companies are going to get a lot of action.
Remember, Wayne Gretzky said what made him great was, “I skate to where the puck is going to be, not where it has been.”
I can be early sometimes - I was over a year early on calling The Great Recession, I predicted a new cycle of war before Russia attacked Ukraine, and started warning you to tighten up your investments and brace for market turmoil as early as last summer.
I’ve been preparing readers for a big defense budget for a while now, and finally the world and the budget are catching up to us.
I hope you’ll join us in this.
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